A former aide to Chuck Quackenbush, the former California insurance commissioner who
resigned in scandal in 2000, was convicted Friday on all charges alleging his
participation in the illegal transfer of insurance settlement money to a
nonprofit group.

Federal jurors took just 30 minutes to convict Brian "B.T'' Thompson of two
counts of mail fraud and one of conspiracy to launder money. The charges carry a
maximum penalty of 30 years in prison, with sentencing set for May 27.

Thompson was immediately taken into custody. This is the 38-year-old
Thompson's second trial on charges he helped siphon off $263,000 between July
1999 and January 2000. He had been convicted of obstructing justice in September
by a different jury that was deadlocked on the fraud and conspiracy charges,
triggering the retrial.

Quackenbush has not been charged with any crime.

Testifying in his own defense Thursday, Thompson made the first public claim
that Quackenbush knew about the payments. Thompson testified that Quackenbush
authorized the shifting of insurance settlement money between Thompson and
Deputy Insurance Commissioner George Grays.

He told jurors he discussed the arrangement with Grays and Quackenbush,
contradicting their earlier testimony. During cross-examination, Thompson
acknowledged he lied in the past about his dealings with Grays.

Grays testified this week that he and Thompson stole $263,000 of the claims
settlement funds though phony "grants" to Thompson's youth football program and
kickbacks to Grays.

Thompson said he met with Grays and the insurance commissioner in July 1999
and "Quackenbush confirmed the proposal."

Grays has pleaded guilty and is cooperating with the government in return for
a reduced sentence.

Quackenbush testified this week that he didn't know about the payments until
the spring of 2000, when he asked his chief deputy, Michael Kelley, "to see
where all the money had gone," The Sacramento Bee reported.

According to Thompson, Grays proposed that Thompson make his Skillz Athletics
Foundation a nonprofit group, which would allow it to accept money from the
California Research and Assistance Fund.

CRAF was a nonprofit created to collect millions of dollars in settlements
Quackenbush made with insurance companies that had mishandled 1994 Northridge
earthquake claims.